Going beyond commission free trading by giving investors back the hidden revenue streams that are currently being made off of them, getting Paid to Trade!
We have 10 current beta users on the platform actively trading for the last 3 months and will be going live with the trading platform to clients in 2 months. We have 100 Charter Members lined up to onbard in Q4, and have begun a wait list for onboarding in 2020.
We will market to individuals in the US aged 25-55 who are digitally proficient, have social propensity and who have accumulated wealth. The self-directed individual market is the US is 16.5M investors with $1.6 Trillion in assets and another $17 Trillion in mutual fund investments.
Problem or Opportunity
Self-directed individual investors are not realizing how much money firms are making off of them, it is in the billions, and our firm will bring radical transparency to the self-directed investing industry. We will give back to our members all of the these previously hidden revenue streams, in essence they will Get Paid to Trade.
Solution (product or service)
An online trading platform for individual investors that is set up to give Members back excess margin interest earned, excess credit balance interest earned, interest earned from securities lending, and all payment for our members order flow.
Advantages or differentiators
Of all of these competitors, we are the only platform and vendor to date that will pay their Members on revenues we received from Payment for Order Flow and interest from Securities Lending. We also have market leading margin rates and cash credit rates.
Our revenues are based on Assets on our platform, which is in turn related to number of Members on our platform. We cap our fee at .50% of the assets on our platform, but this fee is only paid out of our Member's savings. So for every $100,000 on our platform the maximum fee we would charge is $500. We project annual revenues of $1.2M, $5.7M, $23.1M and $108M over the next 4 years.
Our revenues are based on Assets on our platform, which is in turn related to number of Members on our platform. We cap our fee at .50% of the assets on our platform, but this fee is only paid out of our Member's savings.
Money will be spent on
Client Acquisition - 33%
Product Development - 25%
Operations Expansion (hiring) - 17%
Data Science and Algos - 9%
G & A - 11%
Offer for investor
We have closed on $1M of a $2M convertible note, so are looking for $1M of the balance. The note is open until end of December and is convertible into the next priced capital raise at a 20% discount, a 5% interest rate, and has a valuation cap of $12M. The terms were set by Apex Clearing who was the strategic lead who invested in the first $1M raised.
Our CEO has funded the company with $2M to get us to this current stage.
Biggest risk will be client acquisition, but on the last raise of $1M we hired a CMO/CBO who has experience running the go to market campaigns for Fitbit, credit karma, and TD Ameritrade and who has put in place a robust go to market and PR strategy for All of Us that kicks off next week at FinovateFall in NY.